What trends in EG's earnings suggest for future quarters?

Everest Group's (EG) recent earnings trends and analyst expectations suggest a mixed outlook for future quarters: 1. **Recent Performance**: EG reported a net loss of $593 million and a diluted EPS of -$13.96 for the quarter ending December 31, 2024. This performance indicates significant challenges for the company in the immediate term. |code|Ticker|Name|Date|Total Revenue|Net Income|market_code| |---|---|---|---|---|---|---| |EG|EG.N|Everest Group|2024 Q1|4.133E9|7.33E8|169| |EG|EG.N|Everest Group|2024 Q2|4.227E9|7.24E8|169| |EG|EG.N|Everest Group|2024 Q3|4.285E9|5.09E8|169| |EG|EG.N|Everest Group|2024 Q4|4.636E9|-5.93E8|169| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |EG|EG.N|Everest Group|2024 Q1|81.203007518797|16.87|169| |EG|EG.N|Everest Group|2024 Q2|2.7060270602705887|16.7|169| |EG|EG.N|Everest Group|2024 Q3|-24.50415866922585|11.8|169| |EG|EG.N|Everest Group|2024 Q4|-175.33729087965463|-13.96|169| 2. **Earnings Growth Expectations**: Analysts have lowered their earnings estimates for Q3 2025, with the latest forecast indicating an EPS of $9.23, down from the previous estimate of $9.79. This adjustment suggests that while there may be some recovery, expectations for the near term are cautious. 3. **Future Outlook**: The consensus for FY 2024 EPS is $61.90, with estimates for Q1 2025 at $18.79, Q2 2025 at $19.38, and Q3 2025 at $13.36. The Q4 2025 estimate is $16.04, indicating a potential improvement but remaining below the previous quarter's level. 4. **Analyst Sentiment**: The consensus rating for EG is "Hold," and the average target price is $416.50. This suggests that while there is potential for growth, analysts are cautious and do not see immediate significant upside. 5. **Dividend and Financial Health**: EG has maintained dividend payments for 31 consecutive years, indicating a stable financial foundation despite the recent earnings challenges. The company's return on equity is forecasted to be 17.1% in 3 years, suggesting a strong return on investment. In conclusion, while there are signs of potential recovery and stable long-term fundamentals, the near-term outlook for EG's earnings is cautious, with significant challenges in the immediate quarters.